Modeling Dynamic Effects of Promotion on Interpurchase Times

Topics:
Marketing Strategy
Tags:
Business Operations,
Effect,
Erasmus University Rotterdam,
Marketing,
Marketing Research,
Modeling,
Research & Development
Source:
Erasmus University Rotterdam

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Overview: This paper puts forward a duration model to analyze the dynamic effects of marketing-mix variables on inter-purchase times. It extends the accelerated failure-time model with an autoregressive structure. As marketing efforts usually change during the spells, it explicitly deals with time-varying covariates. The empirical analysis of purchases in three different categories reveals that, for some segments of households, the short-run effects of marketing-mix variables are significantly different from the long-run effects.

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Format: PDF | Size: 232KB | Date: Oct 2002 | Pages: 32

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